If a corporate or a private equity house wants to acquire another company,
it will need to thoroughly understand that company’s current and projected
performance. PwC provides a commercial due diligence report, which usually involves
a comprehensive review of the company’s business plan in the context of
projected market conditions and the industry/competition.
Potential issues
- You are considering acquiring a company, but there is market or competitive
uncertainty, such as new technologies, customers, trends, legislation, powerful
buyers, or a new geographic market etc, and you need to know how these issues
might impact the current and future value of the company
- You are considering acquiring a company, and the revenue/EBIT projections
appear to be very aggressive (relative to historic performance). You therefore
need to test/validate the achievability of these projections
- You are considering acquiring a company, and a significant proportion of
the revenue/EBIT projections appear to be based upon the success of new products,
customers and/or markets. You therefore need to test/validate the reasonableness
of these assumptions
How we can support you
- Your organisation reaps maximum benefit from the PwC network at the most
critical stage of the process and can therefore make informed decisions as
to whether this is still a route you wish to take
- Rapid diagnosis of – and subsequent focus on - key commercial deal
issues with the result that you can be sure that you have had expert advice
regarding recent developments in the chosen sector
- Our teams are likely to have had prior experience in the industry and will
therefore not have to go up the ‘learning curve’ at your expense.
This helps keep your costs down
- PwC’s conclusions are based on well-researched and integrated views
on all aspects of the transaction. This translates into a less cumbersome
and more efficient due diligence process, meaning your organisation may only
have one report rather than two or three. This then saves you time and of
course, cost
PwC's commercial & market due diligence services cover
- Sustainability of competitive advantage and revenues/income
- Achievability of business plan projections
- Target specific market/industry-related investment risks
- Strategic/market-related value-creating opportunities
- Implications for financial performance/valuation
